Just have to look at the S&P to find expensive.Firstly these...

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20/01/20

17:57

Post #: 42478467
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Originally posted by 1ronnie: ↑

O dear, who could have known this? Must be CSL and WAAAX ?
ASX 200 ex-financials, materials most expensive in the world: JP Morgan

Luke Housego AFR

Australia's sharemarket is the most costly globally if the financial and materials sectors are excluded, according to analysis from JP Morgan.

"Where the ASX200 is in a league of its own is ex Financials and Materials; on that basis, we have the dubious honour of being the world’s most expensive market – by a considerable margin," JP Morgan's head of equity strategy Jason Steed wrote in a research note.

The analysis is based on a one-year forward price-to-earnings measure and shows that the ASX 200 Index, excluding financials and materials, is trading at a 37.9 per cent premium to MSCI Developed Markets index.

The contrast is not as stark if the key growth sectors are also filtered out, Mr Steed added.

"The forward multiple is less stretched when stripping out our two highest multiple sectors (Healthcare & IT), the index is still trading at a 5.8 per cent premium to the MSCI [Developed Markets index]."

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Just have to look at the S&P to find expensive.

Firstly these stocks make up 17% of the S&P

This is a brief summation of their balance sheets versus market cap

This is the earning growth for the S&P

So where is this headed? All very well to blame the Fed for the current juicing but valuations are in the extreme territory.

Im predicting 60% decline in the S&P to the mean as earnings cannot be used as an excuse for the current MCs
1 Upvote

0 Great analysis

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